Estimating total addressable market to validate business opportunities
Market sizing (TAM/SAM/SOM analysis) estimates the revenue potential of a market opportunity. It's fundamental for startup fundraising, product strategy, and corporate investment decisions. Both top-down (industry data) and bottom-up (customer-level) approaches are used. Every investor pitch, product strategy document, and business case requires market sizing. The skill of making reasonable estimates with limited data is valuable across business roles.